US unemployment rate dips to 7.8 percent: Is the US economy recovering?

The U.S. unemployment rate dropped to 7.8 percent according to a Labour Department report. Employers added 114,000 jobs in September. The figures for July and August were also revised, with the U.S. economy adding 146,000 jobs per month from July through September. These are positive signs for the U.S. economy.

The unemployment rate is the lowest since 2009 and the Obama Administration has added 325,000 jobs during its mandate according to the Washington Post

The majority of jobs, 44,000 were added to healthcare and there were modest gains in transportation and warehousing. Still the economy is sluggish and many of the the jobs added were part time jobs. 8.6 million of those employed want full time jobs, which represents 7.6 percent of the workforce.

The Labour Department reports that among major working groups the unemployment rate for adult women was 7 percent percent, whites 7 percent, teenagers at 23.7 percent, blacks 13.4 percent and hispanics 9.9 percent. The rates for youth, blacks and hispanics remain unchanged. Labour Department

40.1 percent or 4.8 million people have been unemployed for more than 27 weeks. Discouraged workers, those that believe no job is available for them, amount to 802,000 people.

While health care and transportation edged up, manufacturing jobs declined by 16,000. This leaves manufacturing virtually unchanged since August.

Nonetheless the markets responded positively with the Dow Jones edging up 15 points once the report was released.

Job creation and unemployment were major issues discussed during the debate on Tuesday night. Another positive jobs report and the slipping of the unemployment rate to 7.8 percent are positive for President Obama's quest for re-election. It will be seen as another feather in the hat for the Obama campaign.

Mitt Romney doesn't see it that way, he commented on the new jobs figures, stating that this is not what a real recovery looks like, pointing out that 600,000 manufacturing jobs have been lost since President Obama took office. He reemphasize that 23 million Americans are unemployed, nearly one in six living in poverty, while 47 million people are depenent of food stamps.

Mitt Romney's Statement

”This is not what a real recovery looks like. We created fewer jobs in September than in August, and fewer jobs in August than in July, and we’ve lost over 600,000 manufacturing jobs since President Obama took office. If not for all the people who have simply dropped out of the labor force, the real unemployment rate would be closer to 11 percent. The results of President Obama’s failed policies are staggering – 23 million Americans struggling for work, nearly one in six living in poverty and 47 million people dependent on food stamps to feed themselves and their families. The choice in this election is clear. Under President Obama, we’ll get another four years like the last four years. If I’m elected, we will have a real recovery with pro-growth policies that will create 12 million new jobs and rising incomes for everyone.”

Canada with a population the size of California, added 52,100 jobs, which was five times more than economists had expected. Yet the unemployment rate edged up to 7.4 percent. Does that make sense? This is half the jobs the U.S. economy created.

The vast majority of Canadian jobs were full time jobs and were taken by the 22-54 age group.

“With this increase, the employment level for core-aged men is back to its pre-recession peak of October 2008,” said Statistics Canada

The majority of Canadian jobs were created in retail and wholesale, 34,000, while construction added 29,000 jobs.